Nairobi — The High Court has quashed President William Ruto's Executive Order No. 3 of 2024 on the management of State corporations, declaring key provisions of the State Corporations Act unconstitutional for undermining the mandate of the Public Service Commission (PSC).

Justice Chacha Mwita ruled that sections 5(3) and 27(c) of the Act violate Article 234(2) of the Constitution, which exclusively vests public service management powers in the PSC.

"The President cannot exercise powers that are constitutionally vested in the Public Service Commission," Justice Mwita said. "Sections 5(3) and 27(c) of the State Corporations Act, to the extent that they confer such powers, are unconstitutional, null, and void."

The Executive Order, signed on May 24, 2024, under Gazette Notice No. 6265 Vol. CXXVI-No. 70, introduced new guidelines governing board appointments, terms of service, and staff management in State corporations.

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It also placed the Office of the President at the center of human resource and governance oversight, a move that drew immediate opposition from the PSC and governance experts.

Under section 5(3) of the Act, parastatal boards were allowed to hire staff "on such terms and conditions as the Cabinet Secretary may, in consultation with the Committee, approve," while section 27(c) gave the State Corporations Advisory Committee (SCAC) powers to advise on appointments, transfers, and removals of officers.

Justice Mwita found that, when combined with the Executive Order, these provisions created a parallel authority structure that usurped the PSC's constitutional role.

The court ruled that while the President may issue general policy directions, such powers cannot extend to overriding independent constitutional commissions.